A multi-asset strategy is a mathematically smart way of investing. It spreads investment risk across several uncorrelated assets to smoothen out portfolio volatility and limit downside risk. This strategy aims to buy underperforming asset classes and sell outperforming asset classes, effectively buying things cheap and selling them at a premium, which is return accretive in the long run.
But multi-asset investing is as much about psychology as it is about maths. We, humans, are irrational creatures with emotional and cognitive biases that can often come in the way of prudent asset allocation decisions. Some of these are:
Bias to take action
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Denne historien er fra October 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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